Media Releases
Published Date: 27 June 2007

Joint Press Release by MAS and SGX Corporate Governance Report and Upcoming Initiatives to Strengthen Corporate Governance Practices for Listed Companies



Singapore, 27 June 2007 … The Monetary Authority of Singapore (MAS) and Singapore Exchange Limited (SGX) today released the findings from a study they had commissioned on the current state of corporate governance of SGX-listed companies in Singapore. This is the first comprehensive review of the state of corporate governance practices of SGX-listed companies based on key areas in the Singapore Code of Corporate Governance[1] since the Code was introduced in 2001.

2   Associate Professor Mak Yuen Teen of the National University of Singapore carried out the study. He reviewed the annual reports of 659 mainboard and SESDAQ-listed companies to assess how well they disclosed and implemented the best practice guidelines as set out in the Code.  He also held discussions with a number of independent directors and other market participants. The report sets out eight key recommendations to strengthen corporate governance practices of SGX-listed companies. 

[Please refer to the Executive Summary for the key recommendations.]

3   MAS and SGX will carefully study the report findings to help determine what practical steps we can take with industry stakeholders to enhance corporate governance of SGX-listed companies.  MAS and SGX are exploring two immediate initiatives.

4   The first, in conjunction with the Singapore Institute of Directors (SID), is to initiate a review of how we can significantly enhance current efforts in director training and professional development in Singapore.

5   The second is to examine giving practical guidance for audit committees on how they can better perform the critical role they play in the performance and governance of listed companies.  MAS and SGX will discuss these and other initiatives with various stakeholders, including the Accounting and Corporate Regulatory Authority (ACRA), and professional associations such as the Institute of Certified Public Accountants of Singapore (ICPAS) and SID.

6   Shane Tregillis, Deputy Managing Director, Market Conduct, MAS, said, “MAS considers creating a wider pool of well qualified independent-minded directors and enhancing the effectiveness of audit committees as key steps in strengthening corporate governance practices for SGX-listed companies.”

7   Ms Yeo Lian Sim, Executive Vice President and Head, Risk Management and Regulation, SGX, added: “Strengthening the practice of corporate governance will be the focus of MAS and SGX working together with other stakeholders.”

1. Executive Summary of corporate governance report (30.2 KB)
2. Full corporate governance report (13.7 MB)

[1]  All companies listed on the SGX are required as part of the SGX Listing Rules, to give a description in their annual reports of their corporate governance practices with specific references to each of the guidelines set out in the Code of Corporate Governance; where they deviate from the Code, they are required to disclose these non-compliances with appropriate explanations.